Understanding Gratuity: What Are the Basic Conditions and How Do You Calculate It?

Hi Sir,

I want to know the basic conditions for the calculation of gratuity and how to calculate it.

Thanks,
Swapnil

Dear Swapnil,

Please go through section 4 of the Gratuity Act, 1972 for your query.

With Regards,
R.N.Khola

Gratuity Payment Calculation Procedure

This is the calculation procedure for gratuity payment as laid down in Section 4(2) explanation, which may be read as follows. For more details, please go through Section 4 of this Act.

Section 4(2) Explanation

In the case of a monthly-rated employee, the fifteen days' wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying the quotient by fifteen.

With Regards,
R.N. Khola | LL & IR |
Skylark Associates | Gurgaon | Haryana |

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